This study not only aims to elucidate the curvilinear nexus between financial resilience (FR) and corporate financial performance (CFP) by drawing on the ‘too much of a good thing (TMGT)’ and ‘too little of a good thing (TLGT)’ effect but also attempts to examine whether the nonlinear relationship explains the conflicts found in previous findings. Data were analyzed from Taiwan publicly listed manufacturing firms amid the COVID-19 epidemic. Quantile regression approach results evidence that relationship between FR and CFP is of a concave-convex pattern. Moreover, the environmentally sensitive and non-sensitive firms are linked to CFP differently. The nexus between FR and CFP is concave for the environmentally sensitive firms, whereas the FR-CFP nexus is concave-convex for the environmentally non-sensitive firms. Overall, Taiwan’s manufacturing firms should carefully evaluate how capital is allocated to FR to avoid under- or over-investment in FR.
關聯:
Humanities and Social Sciences Communications 10, 654
